Apple Halts Additional Production of Lower-Cost iPhone XR

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Apple is asking for more of the older models – iPhone 8 and iPhone 8 Plus that are around 20% cheaper compared to the XR model’s introductory price of $749

American tech giant Apple Inc has asked its Taiwan-based phone assemblers Pegatron and Foxconn to cancel plans for extra production lines that are dedicated for making Apple’s iPhone XR, which was launched in the month of October, the Nikkei reported.

The American multinational had also told a smaller assembler of its flagship phone – Wistron, to halt for rush orders. However, the company will not get any orders for iPhone XR this season, the report stated, citing some sources from supply chain industry.

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No additional production

Foxconn has first prepared around 60 assembly lines for assembling of Apple’s iPhone XR model, but presently using just 45 production lines as its major customer said that it does not require to produce that many models of the phone by now,” the Nikkei reported citing a source.

This means that the Taiwanese electronics manufacturer would now make around 100,000 lesser units in a day to reflect the recent demand outlook, a decline of 20%-25% from the original positive outlook, the source said.

Facing a similar situation, fellow Taiwanese company Pegatron also suspends plans to increase production and awaits further directions from the iPhone maker.

Apple Inc, the most profitable smartphone company in the world, had huge expectations from its low-cost iPhone XR model that it would ramp up shipments of the phones this year. Apple has launched aluminium made iPhone XR, at its launch event in September, along with two other two iPhone models – XS and XS Max.

Demand for older iPhone models

However, the American tech giant is asking for more of the older models – iPhone 8 and iPhone 8 Plus that are around 20% cheaper compared to the XR model’s introductory price of $749.

The iPhone 8 and iPhone 8 Plus suppliers are receiving a combined order of about 5 million additional units. Previously, iPhone maker has planned for 20 million units of older models of iPhone during the quarter, however, it has raised the numbers to 25 million units.

Pegatron is the major supplier for the smaller-screen iPhone 8 model, while Foxconn is the key maker of iPhone 8 Plus.

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